Prime Minister Tony Blair said he fully sympathised with workers, pointing out that the Scottish Executive had already stepped in to help employees.

Deputy First Minister Nicol Stephen has pledged funding to help the situation.

'Large screen TV'

Criticising the NCR announcement, Mr McGovern told the Commons: "They did so in the most callous fashion imaginable, assembling the 800 manufacturing staff in a room with a large-screen TV, from which the chief executive announced via video-link from America that 650 of them were being made redundant."

Mr Blair said: "I sympathise fully with those that will lose their jobs as a result of this decision by the company."

The prime minister added: "It's also important that we safeguard the company's position in other parts of Scotland as well."

NCR last week announced that production of ATM cash dispensers would continue at its plant in Budapest, opened just over a year ago and at factories in Beijing and India.

The US firm blamed the "changing market environment" and competitive pressures for the job losses in Dundee.